Japan's Automakers Could Merge Into Three Groups Or Less By 2020: Report
The Japanese auto industry is crowded. Too crowded, according to Bloomberg’s industry expert, who thinks Japan’s seven automakers will have to merge into three or fewer groups in the next four years to keep up with rising development costs.
Last month, Toyota went from owning a majority stake in Daihatsu to owning the company entirely after a $3 billion sale. That move, according to Bloomberg’s source Takaki Nakanishi, an analyst at Jeffries Group LLC investment banking firm, marks beginning of a trend towards consolidation in Japan.
In the next four years, Nakanishi thinks Japan’s seven remaining automakers—Toyota, Honda, Suzuki, Nissan, Fuji Heavy Industries, Mazda and Mitsubishi Motors— will merge into no more than three consolidated companies.
The industry expert says the move would come as a response to the rising cost associated with developing safer, more efficient and autonomous cars.
(Jalopnik.com)
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